Payday loans in Australia

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Payday loans in Australia are part of the small loans market, which was estimated in 2008 to be between $800m and $1bn a year,[citation needed] although it seems likely that the true market was and currently is higher than this.

The growth of this market mirrors the growth in Canada, the United Kingdom, and the United States. Because the market for small loans is becoming more defined, the regulatory authorities and the larger financial organizations are beginning to take a much closer interest.

Most fringe lending is now covered by the Uniform Consumer Credit Code (UCCC);[1] but, in the past this industry was not very highly regulated, and some lenders still continue to use loopholes to avoid the UCCC. A report from 4 Corners found that some lenders utilise bait and switch methods to circumvent laws regarding establishment fees and interest.[2] Payday lenders have also come under fire due to accusations of predatory lending and charging excessively high interest rates.[3]

New South Wales and Queensland have imposed a 48%-APR maximum loan rate, including fees and brokerage.[4][5]


  1. ^ The Uniform Consumer Credit Code, Australia
  2. ^ Long, Stephen; Richards, Deborah. "Game of Loans". 4Corners. Retrieved 25 May 2015. 
  3. ^ Green, Shane. "Disadvantaged caught in the lender trap". Sydney Morning Herald. Retrieved 25 May 2015. 
  4. ^ Interest rate cap, QLD
  5. ^ Annual percentage rates, NSW